US lifts sanctions on an organization involved in the construction of Nord Stream 2

The administration of US President Joe Biden decided not to impose sanctions on Nord Stream 2 AG, the operator of the Nord Stream 2 gas pipeline designed to deliver Russian gas to Europe bypassing Ukraine, as well as its head Matthias Warnig, but at the same time respect to other Russian ships and organizations remain. Writes about it with the BBC.

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“The Department of State has submitted a report to Congress in accordance with the amendments to PEESA, identifying four vessels, five entities and one individual that are involved in the construction of the Nord Stream 2 pipeline and are subject to sanctions,” US Secretary of State Antony Blinken said in a statement.

Blinken said that it was in the national interests of the United States that it was decided "to suspend the sanctions against Nord Stream 2 AG, its head Matthias Warnig and corporate employees of Nord Stream 2 AG."

German Foreign Minister Heiko Maas said they see the decision as "a step forward."

The document sent to Congress mentions the vessels participating in the construction of the gas pipeline ("Yuri Topchet", "Vladislav Strimov", "Baltic Explorer" and "Akademik Chersky"), as well as organizations - "Koksokhimtrast", "Mortransservice", "Morspassluzhba" and “Samara Heat and Power Property Fund”. There are still sanctions against them.

Reaction in the USA

In Congress, the presidential administration's decision caused a flurry of indignation.

Representatives of the Republican Party accused Biden of trying to give the Kremlin its “biggest political victory.” Democrats also joined the opinion of Republicans - they called on the administration to “reconsider its decision.”

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“It’s outrageous, but, contrary to US laws, the Biden administration is actively helping Putin complete his pipeline,” Republican Senator Ted Cruz wrote on Twitter and emphasized: because of this, there is every reason to believe that the “most pro-Russian administration” is now in the White House "

According to the two laws "On Energy Security of Europe", which was approved by the US Congress, the presidential administration must impose sanctions against companies and individuals involved in the construction of the gas pipeline.

After announcing the refusal to impose sanctions, the administration was forced to comply with formal procedures. As required by law, on Wednesday, May 19, a three-page State Department report was submitted to Congress. It explains that four Russian vessels and four enterprises have been involved in the construction of the pipeline in recent months. Restrictive measures can be introduced against them.

At the same time, US Secretary of State Anthony Blinken asked to exclude Nord Stream2 AG, its head Matthias Warnig and the entire top management of the company from possible sanctions lists.

During Blinken's meeting with Russian Foreign Minister Sergei Lavrov, the US State Department issued a statement in which it explained that such a decision was "dictated by the national interests of the United States."

The report submitted to Congress states that the administration decided against imposing sanctions after consultations with European allies. “This will negatively impact US relations with Germany, the EU and other European allies and partners,” the document says.

Opponents of the administration's decision also recalled that President Biden himself called the construction of the pipeline "a bad idea." In addition, it is known that the head of the project operator Matthias Warnig is a former employee of the East German intelligence service "Stasi" and an old acquaintance of Russian President Vladimir Putin.

“I oppose the decision to lift sanctions. “I urge the administration to reverse this decision and introduce restrictive measures, as required by laws passed by Congress,” said the chairman of the Senate Foreign Relations Committee, Democrat Bob Menendez.

According to Democratic Senator Jinn Shahin, "the completion of the pipeline poses a threat to US interests in strategic stability throughout the region."

US media said several former diplomats disagreed with the decision during the discussion. But their opinion was not heeded.

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Nevertheless, according to the expert of the Washington Atlantic Council and former US ambassador to Ukraine John Herbst, harsh criticism of legislators in Congress could force the administration to change this decision and still impose sanctions.

“Obviously, the decision was made on the eve of Biden’s upcoming meeting with Putin as a not very significant concession on the part of Washington,” says political scientist Marvin Kalb. “But if the administration refuses to impose sanctions, then Congress can do so.” And it will be much more difficult to reverse such a decision: to repeal the Jackson-Vanik amendment, for example, it took 40 years.”

What is Nord Stream 2 for?

Construction of the Nord Stream 2 pipeline began in September 2018. The gas pipeline is being laid from the western coast of Russia along the Baltic Sea to the shores of Germany. To do this, it was necessary to obtain permits for laying pipes in the exclusive economic zones of Finland, Sweden, Denmark and Germany.

It took the longest time - more than two years - for the builders to obtain permission from Denmark. The local regulator allowed the laying of pipes only in October 2019. By this time, sections in the waters of other countries had already been almost completed, and the gas pipeline as a whole was 83% complete.

At the end of March, the operator Nord Stream 2 AG announced that it remains to complete another 121 kilometers of the total length of the two tracks of 2 kilometers.

Ukraine actively opposed Nord Stream 2. The successful implementation of the project will theoretically allow Russia to refuse the transit of gas through Ukraine, and Kiev in this case will be deprived of transit income.

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